Correlation Between Kip McGrath and Wt Financial
Can any of the company-specific risk be diversified away by investing in both Kip McGrath and Wt Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kip McGrath and Wt Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kip McGrath Education and Wt Financial Group, you can compare the effects of market volatilities on Kip McGrath and Wt Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kip McGrath with a short position of Wt Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kip McGrath and Wt Financial.
Diversification Opportunities for Kip McGrath and Wt Financial
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kip and WTL is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kip McGrath Education and Wt Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wt Financial Group and Kip McGrath is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kip McGrath Education are associated (or correlated) with Wt Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wt Financial Group has no effect on the direction of Kip McGrath i.e., Kip McGrath and Wt Financial go up and down completely randomly.
Pair Corralation between Kip McGrath and Wt Financial
Assuming the 90 days trading horizon Kip McGrath Education is expected to under-perform the Wt Financial. In addition to that, Kip McGrath is 1.18 times more volatile than Wt Financial Group. It trades about 0.0 of its total potential returns per unit of risk. Wt Financial Group is currently generating about 0.03 per unit of volatility. If you would invest 7.39 in Wt Financial Group on September 3, 2024 and sell it today you would earn a total of 1.61 from holding Wt Financial Group or generate 21.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kip McGrath Education vs. Wt Financial Group
Performance |
| Timeline |
| Kip McGrath Education |
| Wt Financial Group |
Kip McGrath and Wt Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kip McGrath and Wt Financial
The main advantage of trading using opposite Kip McGrath and Wt Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kip McGrath position performs unexpectedly, Wt Financial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Wt Financial will offset losses from the drop in Wt Financial's long position.| Kip McGrath vs. Aurelia Metals | Kip McGrath vs. MetalsGrove Mining | Kip McGrath vs. EROAD | Kip McGrath vs. Duxton Broadacre Farms |
| Wt Financial vs. Audio Pixels Holdings | Wt Financial vs. Iodm | Wt Financial vs. TTG Fintech | Wt Financial vs. Mantle Minerals Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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